Slack today announced a surprise announcement that HiChat, once a major competitor to its workplace chat service, was taken over by corporate software giant Atlassian. As part of the partnership between Slack and Atlassian, Hipchat will be closed and the two companies will work together to migrate all users to Slack. The same goes for Stride, Hipchat's chat and collaboration successor, launched by Atlassian last year.
In return, Atlassian receives a small share of the startup, while Slack pays an undisclosed amount over the next three years to fully acquire the HipChat and Stride software stacks and bases. The partnership comes at a critical time for the Enterprise Chat software, with Microsoft competing with a competitor called Teams, which is now available to 1
… • Atlassian makes a small but symbolic investment in Slack • We commit teams on both sides to create deeper and stronger integrations between Slack and the Atlassian product family – there's so much to do!
– Stewart Butterfield (@stewart) July 26, 2018
Prior to this partnership, Atlassian sought to remain competitive in the corporate chat room by shifting his HipChat customers to a new team product she named Stride , This service offered standard chat and other communication features as well as audio / video conferencing and project tracking. Unfortunately, like Hipchat, Stride could not gain the necessary traction to remain profitable, especially as big companies like Microsoft entered the enterprise chat area.
For existing HipChat users, they have the option to use the service by February. At this point, they are asked to switch to Slack. To date, Microsoft claims that 200,000 organizations deploy teams while Slack employs 500,000 active organizations.